SPF clarifies purchase of Continental property |24 June 2016

The Seychelles Pension Fund has clarified its recent purchase of Continental Property from Heirs Richard Mancham (seller).

The Seychelles Pension Fund (SPF) said in a communiqué that negotiations for the purchase of the property started in July 2015 and five valuation reports were received from five different licensed valuers.

Two valuations were given by the seller and three were sought by SPF.

SPF decided to use the average of the five valuations, which came to R21,975,427 as the maximum price that it would be willing to pay for the property and the seller agreed to this.

As a consequence, the property (V5344 covering an area of 1,704m²) was bought by SPF from Heirs Richard Mancham for R22 million.

The purchase of Continental Property allowed SPF to acquire one of the last few remaining prime locations in the centre of Victoria.

The property is ideally located for a commercial complex development and SPF has already sought advice from the Planning Authority for its development.

SPF’s initial assessment shows that the development will be viable with a rate of return of at least 10% spread over 10 years, in line with the rate of return on investments on SPF’s properties in Victoria.

There is already considerable interest in the development from individuals and businesses in leasing space in the new complex once completed.

SPF has reassured its members that all investments are made following rigorous established procedures which include an assessment of the financial viability of the project by an investment committee and approval by its Board of Trustees.

It will, as mandated, continue to look for new investments with a good rate of return to maintain its long-term sustainability.